Roley worked at the Federal
Reserve Bank in Kansas City and still is a consultant for the Fed. He feels
the board has done pretty well with the economy--even during a Presidential
election year.Roley ends to ignore the "technical" side of market analysis. He says investors need to look at two overall factors: the inflation rate and the performance of the economy. "If inflation increases, the Federal Reserve is going to tighten quickly. And if the economy looks very strong, the Fed is going to tighten."
To watch the economic performance, he says investors should watch labor market trends and the rates in domestic GNP.
Roley worked at the Federal
Reserve Bank in Kansas City and still is a consultant for the Fed. He feels
the board has done pretty well with the economy--even during a Presidential
election year.
"The Fed has ignored the political pressures and pretty much does the right thing," he says. "They are pretty well insulated. After all, their terms are for 14 years. Of course, they are a creation of Congress and lawmakers could always dissolve the Fed--but they won't. It would cause too much of a panic."--Tom Griffin
The Feeling is Mutuals: Funds Aren't Such Bad
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